Programmatic Media Buying is on the Rise
There’s a lot of buzz about programmatic media these days (aka programmatic marketing or advertising) and for good reason. Programmatic ads are smart, targeted and flexible, and upend the traditional model of media buying where a buyer agrees to run a certain number of ads (or impressions) with a publisher and is locked in to a contract.
Another perk: programmatic buying allows you to avoid those pesky humans. (They are THE WORST!)
Basically, programmatic ads of all kinds (display, social media, mobile, video, etc.) are placed using artificial intelligence and real-time bidding. Special software uses an algorithm to purchase advertising space in real time through an automated bidding system, and specifically targets your ads based on a data-driven strategy.
While manual campaign optimization can eat up your ad budget as you try to determine what’s working and what isn’t, programmatic campaigns do the work for you – instantaneously. You simply enter your campaign goals and key performance indicators (KPIs), and the program takes it from there.
Programmatic advertising goes beyond traditional demographic segmentation, leveraging real-time behavioral data to determine which ad is best suited to which person at which moment on which device, providing a personalized 1:1 marketing experience.
It also allows you to easily run cross-channel campaigns, creating multiple touchpoints with your prospective buyers.
Automated buying is growing not only because it makes ad transactions more efficient (no more manual adjustments, insertions or bidding) but because it can make them more effective.
The Growth of Programmatic Ads
According to eMarketer, in 2016, US programmatic digital display ad spending will reach $22.10 billion. That’s a jump of 39.7% over last year, and represents 67% of total digital display ad spending in the US. Next year, that number is on track to reach 72%.
“Programmatic is extremely efficient and unparalleled in its ability to pair rich audience data with ad inventory and targeting.” -Lauren Fisher, eMarketer Senior Analyst
As programmatic buying improves (since it uses AI, it can actually learn), marketers can benefit from more effective campaigns, lower acquisition costs, and allocate more of their budgets to the creative, overall strategy and client retention.
Consumers will also benefit from seeing ads that are actually valuable to them.
The days of trial and error, or spray and pray, mass advertising is over. Get with the program, and see if programmatic advertising helps you reach your specific marketing goals.
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